A federal judge has indefinitely postponed the trial of former employees of the accounting firm KPMG in a criminal tax shelter case, citing concerns that the defendants will not be able to pay their lawyers.
The judge also hinted at sanctions against the prosecution for pressuring the firm to stop paying the defendants' legal fees. Any sanctions could have a major impact on the way white-collar criminal cases are handled in the future.
The ruling, made late Monday by Judge Lewis A. Kaplan of the Federal District Court in Manhattan, is the latest twist in the federal case against 16 former KPMG employees and an outside investment adviser and lawyer. Prosecutors say that the defendants made, sold and used questionable tax shelters that cost the Treasury $2.5 billion in unpaid taxes.
Details here from the New York Times via LexisONE.com.